Prosecutors have launched a compulsory investigation into Dodram Food, a meat processing company, and De Heus Korea (formerly CJ Feed & Care), on suspicion of colluding to fix pork prices.
According to legal sources on the 23rd, the Criminal Division 6 of the Seoul Eastern District Prosecutors' Office (headed by Director General Lee Jeong-ho) is conducting searches and seizures of Dodram Food, De Heus Korea, and others on suspicion of violating the Monopoly Regulation and Fair Trade Act.
These corporations are suspected of prearranging bid prices or quote prices in advance while supplying pork to E-MART.
This compulsory investigation follows the Korea Fair Trade Commission's complaint last month to prosecutors against Dodram Food and De Heus Korea (then CJ Feed & Care), Daeseong Industrial, Daejeon Chungnam Swine Agriculture Cooperative, Bugyeong Swine Cooperative, Bodam, and others.
According to the Korea Fair Trade Commission (FTC), these corporations were found to have secretly agreed on prices in advance—at bids for "general pork" and during the quote submission process for individual negotiations for "branded pork."
Specifically, in 8 of the 14 bids for general pork conducted by E-MART from Nov. 3, 2021, to Feb. 3, 2022, a total of eight companies allegedly prearranged the bid prices or minimum prices by cut—such as samgyeopsal and neck—and submitted prices accordingly.
In the submission of quotes for branded pork conducted from Jul. 1, 2021, to Oct. 11, 2023, five companies allegedly agreed in advance on per-cut quote prices on 10 occasions.
In response, the Korea Fair Trade Commission (FTC) decided last month to impose a total penalty surcharge of 3.165 billion won on the colluding corporations, including Dodram Food.
De Heus Korea, searched and seized that day, was formerly CJ Feed & Care, a livestock and feed subsidiary of CJ affiliates, but after CJ sold it last year to the Dutch feed company "De Heus," it changed its corporate name on the 1st.